We are again talking about a Government Shutdown. The consequences of this are immense, and the outcome will be tragic for All who engage in it. It will only serve to anger the American Public, who have never actually been with the Tea Party in its beliefs. All other Legislators plus White House, though, will come in for equal amounts of acrimony. I believe it is time for all Moderates to enter with a decisive program. I would personally go with the Full Tax Rule, where all Income is taxed at 21%, and all deductions, exemptions, and Tax credits are left to be repaid after Income Tax Returns have been filed. I like this decision, and will try to explain my position in the following paragraphs.
Such a Ruling gets the federal government the finance necessary to maintain the government. Legislators will have to come out and state exactly what federal programs they are opposed to funding, and how they should be cut. They will not be able to escape the specific responsibility by emersion in the general responsibility. Their fellow Legislators do not have to accept the general onus which would come from shutting down the essential services of the federal government. The second big reason will be that Congress will examine their position on the general run of Tax reductions on the books, as they contemplate the return of such huge amounts of Tax Receipts when the federal government actually needs the money. The discussion has suddenly become far more relevant, without the duress which the radical Conservatives would engender.
Such a huge draft of revenue out of the economy would create a number of factors which would be beneficial to the economy. The suppression of Wages in the Low Income and Medium Income ranges would be brought to an end, as the added taxation will vastly increase Wage Demand; such will pressure real increase in low Wages, while suppressing huge increases in the highest Income range. Business would require an enlarged variable Operating Account which will place huge pressure on Banks to return to normal lending practices; something which the Fed has not been able to accomplish. Legislators will be forced to view how much they return to all Parties in excess Tax deductions, exemptions, and Tax credits, and will have to justify such financial give-backs in the face of declaring it must all be borrowed funds which are returned. Business will also be faced with needed expansion, or undergo massive reduction of both Operating funds and Profits. I like this form of closure, which opens necessary discussion of alternate methods of operation. lgl